If the lender does begin legal action
Some people stop making any repayments when the bank begins legal action on the grounds that if they are going to lose their home, they may as well stop making repayments. This is the very opposite of what you should do.
You should make it very clear to the lender that you consider your mortgage sustainable and that you are going to continue paying as much as you can. Let them understand fully that you intend to fully defend the action.
If you are doing your best, and you are paying a reasonable amount, the judge is going to make it as difficult as possible for the bank to repossess your home.
If you are paying the interest in full every month, and you can show that the bank is being unreasonable, the judge will probably not grant repossession.
Check if the lender has adhered to the letter and spirit of the Code of Conduct on Mortgage Arrears. If they have not done so, point it out to them, and they will start the process all over again.
You should contact
New Beginning who specialise in defending lenders' attempts to repossess homes.
They have a very useful list of [broken link removed]which might give you some ideas.
The case may or may not get to court, so be prepared. Make sure you have documented every contact. You will need to show the judge that you have been responsible, so have a file of correspondence documenting your efforts.
The court can be intimidating, so go down and watch a few cases to get an understanding of how it works. You will be relieved to see that most cases are deferred where any defence is put up.